FINWIRES · TerminalLIVE
FINWIRES

Exchange-Traded Funds, Equity Futures Lower Pre-Bell Friday Amid Oil Surge, Higher Yields, Geopolitical Uncertainty

By

The broad market exchange-traded fund SPDR S&P 500 ETF Trust (SPY) was down 0.9% and the actively traded Invesco QQQ Trust (QQQ) was 1.3% lower in Friday's premarket activity as mounting inflation concerns linked to Middle East tensions and stronger oil prices reduce appetite for risk assets.

US stock futures were also lower, with S&P 500 Index futures down 1.1%, Dow Jones Industrial Average futures slipping 0.7%, and Nasdaq futures retreating 1.5% before the start of regular trading.

The New York Federal Reserve's Empire State manufacturing index rose to 19.6 in May from 11.0 in April, compared with expectations of a decrease to a reading of 7.2 in a survey compiled by Bloomberg and the strongest reading in over four years.

The industrial production data for April will be released at 9:15 am ET.

In premarket activity, bitcoin was down by 1%. Among cryptocurrency ETFs, the cryptocurrency fund ProShares Bitcoin Strategy ETF (BITO) was 1% lower, Ether ETF (EETH) retreated by 1.7%, and Bitcoin & Ether Market Cap Weight ETF (BETH) lost 0.03%.

Power Play:

Industrial

The State Street Industrial Select Sector SPDR ETF (XLI) retreated by 0.6%, while the Vanguard Industrials Index Fund (VIS) was flat and the iShares US Industrials ETF (IYJ) was inactive.

Babcock & Wilcox Enterprises (BW) stock was down more than 10% before the opening bell after the company said it priced a public offering of roughly 10.8 million common shares at $18.50 apiece, subject to customary closing conditions.

Winners and Losers:

Financial

The State Street Financial Select Sector SPDR ETF (XLF) retreated by 0.2%. Direxion Daily Financial Bull 3X Shares (FAS) was down 0.7%, while its bearish counterpart, Direxion Daily Financial Bear 3X Shares (FAZ), was 0.9% higher.

HSBC (HSBC) shares were down more than 3% pre-bell after the Financial Times reported the bank has yet to deploy the $4 billion it previously committed to its private credit strategy, with no current timeline for the planned investment.

Consumer

The State Street Consumer Staples Select Sector SPDR ETF (XLP) was up 0.3% and the Vanguard Consumer Staples Index Fund ETF Shares (VDC) was flat. The iShares US Consumer Staples ETF (IYK) was inactive. The State Street Consumer Discretionary Select Sector SPDR ETF (XLY) lost 1%. The VanEck Retail ETF (RTH) gained 1.5%, while the State Street SPDR S&P Retail ETF (XRT) was down 0.7%.

Tesla (TSLA) shares retreated more than 2% pre-bell after Reuters reported that the company came under pressure from an Australian judge, who questioned whether the automaker was taking the discovery process seriously in a class action over alleged vehicle defects and misleading claims.

Technology

The State Street Technology Select Sector SPDR ETF (XLK) retreated 1.8%, and the iShares US Technology ETF (IYW) was 1.8% lower, while the iShares Expanded Tech Sector ETF (IGM) was down 1.5%. Among semiconductor ETFs, the State Street SPDR S&P Semiconductor ETF (XSD) fell by 2.7%, while the iShares Semiconductor ETF (SOXX) declined by 3.1%.

Taiwan Semiconductor Manufacturing (TSM) shares declined more than 2% in premarket activity after the company said it plans to reduce its stake in Vanguard International Semiconductor to 19% from 27.1% by selling 152 million shares.

Health Care

The State Street Health Care Select Sector SPDR ETF (XLV) retreated by 0.1%, the Vanguard Health Care Index Fund (VHT) was down 0.3%, while the iShares US Healthcare ETF (IYH) was inactive. The iShares Biotechnology ETF (IBB) was 0.2% lower

Alumis (ALMS) stock was down more than 1% premarket after the company reported a Q1 net loss and lower revenue.

Energy

The iShares US Energy ETF (IYE) gained by 0.9%, while the State Street Energy Select Sector SPDR ETF (XLE) was up by 0.5%.

BP (BP) shares retreated by 0.9% pre-bell. Reuters reported that the company is contemplating selling certain natural gas assets in Egypt.

Commodities

Front-month US West Texas Intermediate crude oil advanced by 3.4% to $104.62 per barrel on the New York Mercantile Exchange. Natural gas was up 1.7% at $2.94 per 1 million British Thermal Units. The United States Oil Fund (USO) increased by 2%, while the United States Natural Gas Fund (UNG) was 1.5% higher.

Gold futures for May retreated by 2.8% to $4,556.20 an ounce on the Comex. Silver futures fell by 7.9% to $78.62 an ounce. SPDR Gold Shares (GLD) was 2.1% lower, and the iShares Silver Trust (SLV) declined by 5.8%.

Related Articles

Commodities

Carbon Capture Offers Fastest Route to Cleaner Data Centers, Wood Mackenzie Says

Carbon capture attached to gas-fired power plants offers the quickest way to reduce emissions from data centers as electricity demand could rise by 100 gigawatts to 200 GW by 2030, Wood Mackenzie said in a Thursday note.Data centers used about 450 terawatt-hours of electricity in 2025 and produced around 0.2 billion metric tons of carbon dioxide emissions annually, representing more than 0.5% of global emissions, the note said.Wood Mackenzie said steel, chemical, and cement industries emit far more carbon dioxide at 3.5 billion mt, 3 billion mt, and 2.3 billion mt annually, respectively, limiting the broader climate impact of cleaner data centers alone.US data centers currently emit 548 kilograms of carbon dioxide per megawatt-hour, or 48% above the national grid average, as artificial intelligence continues driving higher electricity consumption, according to Wood Mackenzie.Natural gas remains the primary source of near-term data center power additions, while all three major combined-cycle gas turbine manufacturers are expanding capacity after reaching full order backlogs, the note said."With gas power dominating buildouts right now and 58 GW already in development in Texas alone, the practical question isn't whether data centers will use gas, it's whether that gas will be decarbonized," said Peter Findlay, director of CCUS Analytics at Wood Mackenzie.Carbon capture systems can remove 92% to 98% of emissions from gas-fired plants, while developers can install the technology within three to four years or retrofit existing facilities within three to five years.The note estimated carbon capture would increase US gas-fired electricity costs by $15/MWh to $45/MWh after federal 45Q tax incentives, raising total power costs to roughly $115/MWh."At roughly $115 per MWh including capture, this represents a manageable premium for decarbonized power," Findlay said, adding that the technology is already commercially available and ready to scale.Enhanced geothermal systems could lower electricity costs to about $61 per MWh between 2030 and 2035, though only 1.5 GW are currently in the development pipeline.The note said restarted nuclear plants could generate decarbonized electricity at roughly $155 per MWh, although only 11.5 GW of retired nuclear capacity remains available in the US.Wood Mackenzie said long-duration energy storage technologies still face high costs of $100/MWh to $300/MWh, limiting their competitiveness against other low-carbon energy options.Wood Mackenzie said renewable energy and battery storage will remain important for cleaner power grids, although solar and wind alone cannot reliably meet constant data center electricity demand without significant natural gas backup."This isn't an either-or situation," Findlay said. "Renewables will help decarbonize the overall grid, which benefits everyone. But for data centers specifically - with their massive, constant power demands - you need firm capacity."Wood Mackenzie said hyperscalers are facing growing pressure to balance rapid expansion of artificial intelligence with long-term emissions-reduction commitments."Global data center emissions will increase," Findlay said, adding that strong balance sheets and public sustainability commitments will shape how hyperscalers address emissions over the coming decades.

Commodities

US Natural Gas Update: Futures Climb on Small Inventory Build, Increased Cooling Demand Forecasts

US natural gas futures rose in after-hours trade on Thursday due to a smaller-than-expected storage build and supportive weather forecasts.Front-month Henry Hub futures and the continuous contract both rose by 1.96% to $2.92 per million British thermal units.The US Energy Information Administration reported an 85 Bcf increase in natural gas storage for the week ending May 8. The weekly inventory build was smaller than some forecasts as high as 91 Bcf, but largely in line with most analyst forecasts of an 84-87 Bcf build and close to the five-year average injection of 84 Bcf.Total working gas in storage climbed to 2,290 Bcf, with the surplus versus the five-year average holding near 140 Bcf. Inventories are now about 2.3% above year-ago levels and roughly 6.5% above seasonal averages, according to Trading Economics. By comparison, the same week last year recorded a larger storage injection of 109 Bcf.Weather forecasts also supported prices. Barchart, citing The Commodity Weather Group, said Thursday that forecasts turned warmer, with above-normal temperatures expected across the Midwest through May 18. The warmer outlook could lift natural gas demand from power utilities as air-conditioning use increases.Gelber & Associates said the latest forecast shift provides enough support for cooling demand to keep the market attentive to power-sector consumption, though not enough on its own to make the near-term decisively tight.BNEF data, cited by Barchart, showed US gas production fell to 107.6 Bcf/d on Thursday, down 2.2 Bcf/d from Wednesday, but up 1% from a year earlier.Lower-48 gas demand rose 3.7% year over year to 68.2 Bcf/d, up 400 million cubic feet per day from Wednesday.Feedgas flows to US LNG export terminals came in at 17.5 Bcf/d Thursday, down 1.8% from the prior week, but up 200 MMcf/d on the day. Gelber & Associates said "LNG remains the key swing factor outside of domestic weather, but net export demand is still running below recent monthly levels, and the market is waiting for fuller LNG service to restore a cleaner pull on feedgas."

Commodities

Market Chatter: White House Weighs Gas Tax Cut as Iran Conflict Pushes Fuel Prices Higher

The White House is reviewing emergency fuel-price relief options as US gasoline prices remain above $4.50 per gallon during the Iran conflict, Reuters reported Thursday, citing people familiar with the matter.The Trump administration is considering suspending the federal gasoline tax, a move that could lower pump prices by 18 cents per gallon.Officials previously viewed the proposal as unnecessary, but growing fuel costs and economic concerns are increasing pressure on the administration to act.One person familiar with the discussions said the White House now believes Trump needs "a visible consumer relief move now" after gasoline prices jumped 50% since the war started.US consumer inflation rose to 3.8% in April, the highest level in nearly three years, while consumer confidence recently fell to a record low during the conflict, the report added.A Reuters/Ipsos poll conducted in May showed over 60% of Americans said rising gasoline prices had negatively affected household finances, while Trump's economic approval rating dropped to 30%.Republican lawmakers are growing concerned that higher fuel costs and economic pressure could damage the party's chances in November's midterm elections.White House officials are also tracking whether national gasoline prices could climb to $5/gal, according to the source, while American Automobile Association data showed prices have already crossed that level in seven US states.The White House did not immediately respond to' request for comment.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)]